Question
You have just turned 45 years old and you think that you need to start saving for retirement. You want to retire at 65 and
You have just turned 45 years old and you think that you need to start saving for retirement. You want to retire at 65 and anticipate that you will live until you are 85. That is, you will contribute up until and including age 65 (20 years). Starting when you are 66, you will withdraw money from your retirement account. Your withdrawals will end on your 85th birthday. (20 years). You have access to a retirement plan that pays 5 percent per year. To live comfortably in retirement, you will require to $50,000 per year. How much do you need to contribute each year to fund your retirement?
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